As an investor it makes crucial sense to make informed decisions into markets that you can do know a lot about.When you are going to be financing films it’s generally a good idea to consider sticking within a genre or a subject matter that you can feel quite comfortable with. If for example, you really enjoy action movies, it could be a wiser decision to stay within this genre so that you can work at financing projects that you can feel quite passionate about.

There are however some rules that you should keep in mind when you are going to be financing films regularly:

Diversity is important: diversification in your portfolio is important and this means creating some diversity within your film financing portfolio too. If you’ve only been financing the same director or projects within the same genre, you run the risk that there could be a spike in some other type of film or a chance that an upcoming debut for that director could flop. Investing in varied projects can help to improve your returns over time.

You can start researching other genres: Sticking with a genre that you know early on is a great idea from the perspective of any film investor. As you continue on in film investment however it is a good idea to think about doing some research into some other genres so that you can expand your knowledge and take advantage of great opportunities when they come up.

Sometimes film investment takes risk: stepping outside of your comfort zone is an investor is important from time to time. Financing in independent film or putting money into an unproven director can often pay off in a very large way.

When it comes to investing in one genre for film financing, this is a good idea at the start but if you want to have longevity with these investments, you need to branch out.